credit crisis?

do u guys think bcoz of the mortgage crisis and financial industry mess, is CFA more likely to throw in credit hedging and VAR questions?

That wouldn’t surprise me at all. For the same reasons, Banking as an IPS question.

how can we hedge default risk when the counterparty of the credit default swap is also going to default?

actuaryalfred Wrote: ------------------------------------------------------- > how can we hedge default risk when the > counterparty of the credit default swap is also > going to default? you buy them?

nope, just want to say it’s impossible to hedge default risks.

actuaryalfred Wrote: ------------------------------------------------------- > nope, just want to say it’s impossible to hedge > default risks. i know, it was a jk and a reference to the jpm bear deal…